Apple is reportedly planning to triple its iPhone production capacity in India within the next two years, according to a new report from Livemint citing “three people aware of the development.”
Apparently, the Cupertino giant is looking to shift some of its productions outside China in order to lessen the effect of disruption in the country and diversify its business into other parts of the world.
“They are looking to scale up the volumes that they make from India….It can rise by more than three times what they aim to make this year,” said a senior industry executive to the Livemint who wished to remain anonymous.
For those unaware, Apple recently witnessed disruptions at the largest iPhone factory in the world operated by Foxconn in Zhengzhou, China due to unrest among workers. Not to forget the COVID-19 lockdowns in the country that hampered the supply of the iPhone 14 going into the holiday season.
According to a second senior executive who told the publication, the Cupertino giant has also directed three of its biggest suppliers, Pegatron, Wistron, and Foxconn to accelerate the production capacity of the iPhone models as well as hire more workers in India.
Additionally, Apple is increasing production capabilities for its short and long-term plans in India.
“India is being increasingly looked at as a player in the global value supply chain,” said a senior government official to Livemint who wished not to be named.
Industry analysts observing the mobile device market and local manufacturing said the development may consequently lead to the domestic production of iPhones increasing to 12-15 million within the next two years.
“We should expect 12-15 million iPhones being produced in India over the next two years. However, to meet this number, the iPhone Pro range also needs to be assembled in India by 2023, along with exports, as the Indian market alone may not be able to absorb all that is made here,” said Navkendar Singh, Associate Vice-President, devices research at IDC India, South Asia, and ANZ.
The new development comes shortly after Foxconn recently invested $500 million in its Indian subsidiary to improve and scale up its operational capacity in the country.
Apple and its suppliers already manufacture several iPhone models in India, which includes the new iPhone 14 with reported plans to expand production to other products, including the iPad, which clearly indicates the company’s intention of making India one of the primary global iPhone manufacturing centers.